For older Australians receiving in-home care, it is essential to be aware of the forthcoming adjustments to pricing arrangements in the Support at Home program, effective July 2025. This information is critical, and we will delineate the main points to ensure you grasp the nature of the changes.
Enhanced Access to Services
Participants in the new Support at Home program can expect expedited access to services, thanks to additional funding allocated over the first two years. The aim is to reduce average wait times to a target of 3 months starting from July 1, 2027.
Revamped Classification System
Under the Support at Home program, participants will undergo an assessment to determine their eligibility for one of the 10 new funding classifications. These classifications represent an improvement over the current 4 packages offered through the Home Care Packages (HCP) program, as they are designed to better align funding with individual needs. The classifications include 8 ongoing categories and 2 short-term pathways – the restorative care pathway and the end-of-life care pathway.
Notably, the highest ongoing classification under Support at Home surpasses the current Level 4 HCP, with an annual budget of nearly $78,000.
Comprehensive Service List
The program will feature a detailed service list outlining the range of services available under Support at Home. This will offer clarity to older Australians and service providers regarding the services that can be accessed. The service list encompasses clinical care (such as nursing and physiotherapy), support for independence (including personal care, respite, transport, and social support), and assistance with daily living tasks (such as cleaning, meal delivery, and gardening).
Quarterly Budgets
Participants will be provided with a quarterly budget that corresponds to their funding classification. They will collaborate with their provider to determine how to allocate their budget among the approved services they are eligible to receive.
Participants will have the option to save a portion of their quarterly budget, up to $1,000 or 10% of the total budget (whichever is greater), for future use across quarters.
Capped Prices
Service providers will deduct funds from participants’ budgets once services have been rendered. The prices for each service must adhere to the price caps established by the government, which are based on recommendations from the Independent Health and Aged Care Pricing Authority.
Enhancing Independence at Home
Assistive Technology and Home Modifications Scheme
Under this innovative scheme, participants will have immediate access to assistive technology and home modifications, eliminating the need to save their package funds for these essential supports. A defined list of assistive technology and home modifications that can be funded will be provided to ensure clarity and efficiency.
Revolutionizing Restorative Care Pathway
The revamped restorative care pathway will build upon the Short-Term Restorative Care Program by significantly increasing the number of available places, extending the maximum duration of support, and broadening access to individuals with less complex needs to prevent falls and other injuries proactively. Participants identified as likely to benefit can now receive up to 12 weeks of intensive allied health-focused support, a notable increase from the current 8-week limit.
The pathway will kick off with 5,000 places, catering to up to 20,000 individuals annually.
Compassionate End of Life Care
For older Australians with less than 3 months to live who prefer to remain at home, priority access will be granted to the program’s highest funding classification for additional home care services ($25,000 for 12 weeks). This pathway will complement, rather than replace, specialized palliative care services such as symptom management and advanced care planning, ensuring a holistic approach to end-of-life care.
Support for thin markets
Grant funding will be available to assist service providers operating in underserved markets, such as rural and remote areas, or those catering to diverse groups.
Enhanced care management
Service providers will receive 10% of participants’ budgets for care management, which will be overseen by care partners. These care partners will ensure that services are tailored to meet the specific needs of participants and promote their overall well-being. The level of care management support may be adjusted based on changes in participants’ needs, such as increased support following hospitalization.
Targeted funding opportunities
Service providers will have access to additional funding for specific groups of participants, including First Nations peoples, individuals experiencing homelessness or at risk of homelessness, and veterans.
Participant contribution framework
Under the Support at Home program, participants will be required to contribute towards the cost of certain services based on their assessed needs, while other services will be provided free of charge. Contribution rates will be determined by the type of service received, as well as the participant’s income and assets. The means-tested percentage contribution will be calculated using the Age Pension means test, with Commonwealth Seniors Health Card holders eligible for reduced contribution rates compared to other self-funded retirees.
Contributions will be based on the services received, as well as the income and assets of the participants
The Support at Home program aims to allocate government funding towards care needs that will enable participants to stay at home and prevent hospitalizations. Participants will be required to contribute more towards items they have historically paid for themselves.
The contribution rates will be determined as a percentage of the cost of each service. This means that participants will pay a set amount based on their percentage contribution rate, while the government will subsidize the remaining cost to the service provider. The contribution rate will vary depending on the type of service received:
- Clinical services (such as nursing and physiotherapy) will not require any contribution, as the government will fully fund assessed clinical care needs across the entire aged care system.
- Independence services (such as personal care) will have moderate contribution rates, acknowledging the crucial role these services play in preventing hospitalizations and residential aged care placements.
- Everyday living services (such as domestic assistance and gardening) will have the highest contribution rates, reflecting the fact that these services are typically not funded by the government at other stages of life.
The amount an individual contributes to their support for independence and everyday living will be determined by their income and assets. The percentage of the cost of services that individuals will be responsible for is as follows:
|
|
Clinical care |
Independence |
Everyday living |
|
Full pensioner |
0% |
5% |
17.5% |
|
Part pensioner and Commonwealth seniors health care eligible |
0% |
Between 5% and 50% depending on income and assets |
Between 17.5% and 80% depending on income and assets |
|
Self-funded retiree |
0% |
50% |
80% |
The means-tested percentage contribution will be determined by the Age Pension means test, which takes into account income and assets. Part pensioners will not need to undergo a separate aged care means test, as Services Australia will already have the necessary information. Commonwealth Seniors Health Card holders, on the other hand, will need to inform Services Australia of their income and assets and update them when their circumstances change.
Principle of No Worse Off for Current Home Care Participants
Home Care Packages
All individuals currently enrolled in a Home Care Package as of June 30, 2025, will continue to receive the same level of funding and will retain any unspent funds allocated under Support at Home. Those individuals on the National Priority System or who have been approved for a package by June 30, 2025, will receive a Support at Home budget equivalent to their approved package level once it becomes available. If these participants undergo another assessment and are deemed eligible for a higher level of funding, they will transition to the new Support at Home classification when it becomes available.
Contributions
A principle of ensuring no one is worse off will be applied to the contribution arrangements for individuals who, as of September 12, 2024, were either receiving a package, on the National Priority System or assessed as eligible for a package. These participants will not experience any negative financial impact due to the reforms; they will continue to make the same or lower contributions than they would have under the previous Home Care arrangements.
Upon transitioning to residential care, these participants will remain on the existing contribution arrangements unless they choose to switch to the new program. Changes to accommodation payments in residential care will still apply to these participants, as accommodation payments are determined through negotiations between the resident and their providers.